Zach Matthews highlights Georgia's high auto insurance rates during legislative hearing

The Georgia State Legislature's Rules Subcommittee on Lawsuit Reform convened on March 11, 2025, to discuss pressing issues surrounding auto insurance rates and the impact of litigation on healthcare costs. The meeting featured testimony from Zach Matthews, a representative from McCormick Mercurian, who highlighted significant disparities in commercial auto insurance rates between Georgia and neighboring Alabama.

Matthews reported that insurance premiums in Georgia are 32% to 40% higher than those in Alabama. He attributed this increase to a high volume of litigation, particularly involving "lean clinics" that focus on personal injury cases. He presented data indicating that these clinics had treated over 29,000 patients in three years, with minimal insurance reimbursement, raising concerns about the influence of litigation on healthcare access and costs.

The discussion also touched on the alarming statistic that 11.4% of Georgians are uninsured. Matthews argued that many individuals are being persuaded to forgo their insurance in favor of pursuing higher settlements from lawsuits, which he claimed is driving up insurance costs for all drivers in the state. He emphasized that the lack of insurance oversight allows unnecessary medical procedures to proliferate, further complicating the issue.

Committee members engaged in a back-and-forth with Matthews, questioning the validity of his data and the implications of his claims. Representative Evans expressed skepticism about the statistics presented, particularly regarding the number of uninsured individuals and the financial losses reported by insurers.

The meeting underscored the complex interplay between insurance rates, healthcare access, and the legal system in Georgia. As the subcommittee considers potential reforms, the discussions highlighted the urgent need for data-driven solutions to address the rising costs of insurance and the challenges faced by uninsured residents. The outcome of these discussions could have significant implications for both consumers and the insurance industry in Georgia.